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A survey shows that economists predict the Federal Reserve will cut interest rates twice this year
Svmuu News: According to a Bloomberg survey, economists have pushed back their expectations for the next interest rate cut by the Federal Reserve from March to June, but still anticipate two 25-basis-point rate cuts by the end of the year.The pace of rate cuts projected by the 46 economists surveyed is faster than the path currently priced into the futures market and includes one more cut than the median forecast by Federal Reserve officials last December.Among the economists surveyed, nearly one-third expressed concerns about Kevin Warsh, the chair nominee nominated by Donald Trump. When asked whether they believed Warsh would be committed to achieving Federal Reserve’s 2% inflation target, 13% said they were unsure, and 18% answered “no.”In a survey conducted last December, economists expected Federal Reserve to cut rates in March and September, whereas in a survey conducted from March 6 to 11 (following the outbreak of the Middle East conflict), respondents anticipated rate cuts in June and October.The median forecast from the survey indicates that economists expect interest rates to be in the 3% to 3.25% range by the end of this year. (Jin Shi)
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